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Facts
The assessee applied for registration under Section 12AB and Section 80G of the Income Tax Act but failed to comply with notices issued by the Ld. CIT(E) requesting documents and information. Consequently, the Ld. CIT(E) rejected the applications. The assessee filed appeals before the Tribunal with a delay of 74 days, attributing the delay to the ill-health of a trustee.
Held
The Tribunal noted that while the medical certificate substantiated the trustee's ill-health until 15.02.2025, the assessee failed to provide sufficient cause for the subsequent delay from 16.02.2025 to 21.05.2025. The Tribunal also observed the assessee's continuous non-compliance with the notices from the Ld. CIT(E). Therefore, the condonation petition was rejected, and both appeals were dismissed in limine.
Key Issues
Whether the delay in filing appeals before the Tribunal, specifically for the period not covered by a medical certificate, was sufficiently explained to warrant condonation.
Sections Cited
12A, 12AB, 80G, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM
Before: SHRI RAVISH SOOD, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER: 1. These appeals are filed by the assessee against the rejection orders of Learned Commissioner of Income Tax (Exemption), Hyderabad [hereinafter in short “Ld.CIT(E)”] vide respective DIN & Notice No. as stated below: -
I.T.A.Nos. 322 & 323/VIZ/2025 Sri Venkatacharya Vaidika Samsthan &Notice No. Dated ITBA/EXM/F/EXM45/2024-25/1071210348(1) 13.12.2 ITBA/EXM/F/EXM45/2024-25/1071408(1) 10.12.2024
Since assessee is same and issues are common, both these appeals are clubbed and heard together and a consolidated order being passed.
3. Briefly stated facts of the case are, assessee has applied for Registration under section 12AB of Income Tax Act, 1961 (in short ‘Act’) and Registration under section 80G of the Act for the A.Y. 2025-2026. The Ld.CIT(E) issued notices on 11.11.2024 to the assessee in respect of proceedings under section 12A(1)(ac)(iii) of the Act to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notice. Further, Ld.CIT(E) issued notices under section 80G(5)(iii) of the Act on 08.07.2024 & 24.08.2024 to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notice. The Assessee has not responded to any of the notices issued by the Ld.CIT(A) and also not filed any information as called for. Therefore, Ld.CIT(A) rejected the application for permanent Registration under section 12A and 80G of the Act stating that the assessee has not complied with the notices issued calling for details.
On being aggrieved by the order of the Ld.CIT(E), assessee filed appeal before us by raising following grounds of appeal: -
Page No. 2
I.T.A.Nos. 322 & 323/VIZ/2025 Sri Venkatacharya Vaidika Samsthan “1. The learned CIT(E) erred in rejecting application filed by the appellant in Form 10AB for approval under clause iii) of first proviso to section 80G(5) without appreciating that the said action was not justified on facts and in law.
2. The learned CIT(E) erred in rejecting the application filed by the appellant in Form 10AB for approval under clause (iii) of first proviso to section 80G(5) on the ground that the erstwhile application in Form 10A was filed under incorrect clause (iv) of first proviso to section 80G(5) instead of filing the same under clause (i) of first proviso to section 80G(5) without appreciating that in the present application filed for final approval under clause iii) of first proviso to section 80G(5), the scope of verification by the CIT should have been restricted to satisfying himself about genuineness of activities and fulfillment of conditions laid down in clauses (i) to (v) of section 80G(5) and therefore, the above reason stated by the CIT for rejecting the present application was not justified in law 3. Without prejudice to ground no. 2, the assessee submits that the learned CITE) erred in not appreciating the law consistently propounded by Hon'ble Courts that the application for approval u/s 80G should not be rejected only on the technical ground that the application is filed under wrong clause and in order to advance the cause of substantial justice, even in such cases, the CIT(E) should treat the application to be filed under the correct clause and dispose it on merit The appellant craves leave to add/ alter/ amend any of the grounds of appeal.”
“1. The learned CIT(E) erred in rejecting application filed by the appellant in Form 10AB for approval under sub clause (iii) of clause (ac) of sub section (I) of section 12A on an ex-parte basis without appreciating that there was a reasonable cause due to which the notices issued on email could not be complied with by the assessee trust.
2. The assessee submits that it is a trust genuinely engaged in charitable activities for past two decades, which was first granted registration u/s 12A vide Certificate No. F. No/H.Ors-2/Vsp/36/2005-06 dated 30.06.2006 AMD it is prayed that in the interest of justice, the assessee may please be granted one more opportunity to satisfy the ld.CIT(E) regarding eligibility of approval us 12A by making due compliances.
3. The appellant craves leave to add/ alter/ amend any of the grounds of appeal.”
Page No. 3
I.T.A.Nos. 322 & 323/VIZ/2025 Sri Venkatacharya Vaidika Samsthan 5. At the outset, it is noticed from the appeal record that there is a delay of 74 days in filing both these appeals before the Tribunal. Assessee has filed common affidavit requesting for condonation of delay for both the appeals. Explaining the reasons for belated filing of the appeals, the Ld. AR drew our attention to the affidavit filed by the assessee dated 09.05.2025, along with a petition seeking for condonation of delay and read out the contents of the affidavit, which is as under:-
“1. The Order rejecting registration under section 12A of the Income Tax Act, 1961, passed by the Learned Commissioner of Income Tax (Exemptions), Hyderabad in case of our Trust, M/s. Sri Venkatacharya Vadika Samsthan was received on my email id bobbyhbcolony@gmail.com on 10.12.2024. Similarly, the Order rejecting Approval u/s 80G of the Income Tax Act, 1961 in case of the above mentioned Trust passed by the CIT(E), Hyderabad was received on the above email id on 13.12.2024, Thus, the due date for filing appeal before the Hon'ble Income Tax Appellate Tribunal (ITAI) was28.02.2025. Due to the circumstances explained hereinbelow, the appeals against both the above Orders are being filed on 13.05.2025, resulting in a delay of 74 days in filing the present appeals before Hon'ble ITAT. 2. 1 hereby state that the Order rejecting registration u/s 12A dated 10.12.2024 as well as the Order rejecting registration u/s 80G passed by the learned CIT(E), Hyderabad was not received physically through post. The said Orders were received on my email id bobbyhbeolony@gmail.com. I wish to state that I was not keeping good health since August 2024 till December 2024. Therefore, since August 2024, I had substantially retreated from the activities of the trust and I had requested the other trustees to look after the activities of the trust. In view of this fact, the notices of hearing issued by the learned CIT Exemptions, Hyderabad on my email id in connection with the proceedings for registration u/s 12A & 80G of the abovenamed Trust during August 2024 to December 2024 as well as the Final Orders dated 10.12.2024 and 13.12.2024 issued on my email by the Id. CIT(E) went unnoticed from my side. The fact that the said Orders rejecting approval u/s 12A & 80G, were passed in December 2024 came to the notice of the other Trustees of our Trust only around the first week of May, 2025 after verifying the details online when one of the trustees enquired about the status of 12A/ 80G proceedings with a tax consultant.
I further wish to state that upon becoming aware of the said fact, the trustees of our trust approached a Counsel practicing before Hon'ble
Page No. 4 I.T.A.Nos. 322 & 323/VIZ/2025 Sri Venkatacharya Vaidika Samsthan ITAT for further action. Subsequently, after forwarding the relevant documents to the Counsel and generating Digital Signature Certificate, the appeals came to be drafted within a short period and the same are being filed on 13.05.2025. In view of the above facts, there was a delay of 74 days in filing the present appeals before Hon'ble ITAT. I hereby state that the delay in filing the appeals was due to genuine reasons as explained above.
4. I hereby state that our Trust, namely, M/s. Sri Venkatacharya VadikaSamsthan, is genuinely engaged in charitable activities for past two decades, and it was first granted registration u/s 12A of the Income Tax Act, 1961 vide Certificate No. F. No/H.Qrs-2/Vsp/36/2005-06 dated 30.06.2006. I wish to state that the non compliance to the notices issued by the Id. CIT Exemptions was due to genuine reasons as explained above. I hereby state that given one more opportunity of being heard before the learned CIT Exemptions in the interest of justice, our Trust shall make due compliances to satisfy the learned CIT(E) regarding eligibility of approval u/s 12A & 80G.”
In view of the above reasons, Ld.AR prayed to condone the delay as the assessee prevented by reasonable cause in filing the appeals with delay of 74 days.
On the other hand, Ld. DR strongly objected for condonation of delay in filing the appeals before the Tribunal.
We have heard both the sides and perused the material available on record. On perusal of the contents of the affidavit filed by the assessee as well as the submission of the Ld. AR, we find that assessee has mentioned the reason for the delay is due to ill-health and produced Medical Certificate dated 16.02.2025 stating that he was suffering from uncontrolled Hypertension, Diabetics Type – II, lower back pain – sciatica from 05.08.2024 and was advised bed rest till 15.02.2025. Copy of the medical Certificate is reproduced below: -
Page No. 5
I.T.A.Nos. 322 & 323/VIZ/2025 Sri Venkatacharya Vaidika Samsthan
We find that the appeals are filed before the Tribunal on 21.05.2025 after completion of bedrest as advised by the doctor. Assessee has not substantiated the reasons for delay for the period from 16.02.2025 to 21.05.2025 by Page No. 6
I.T.A.Nos. 322 & 323/VIZ/2025 Sri Venkatacharya Vaidika Samsthan advancing sufficient cause which has prevented the assessee from filing the appeal before the Tribunal. Various judicial precedents have clearly held that in case of delay in filing the appeals each day of the delay has to be explained properly and substantiated with documentary evidences. In the instant case, assessee has failed to do so, for the period from 16.02.2025 to 21.05.2025. Further, we also observe that assessee has been continuously non-compliant with the notices issued by the Ld.CIT(E). In view of facts and circumstances as discussed above, we find that the delay in filing the appeals has not been properly explained by the assessee. Accordingly, we hereby reject the condonation petition filed by the assessee and dismiss the appeals filed by the assessee in limine.
In the result, both the appeals filed by the assessee are dismissed in limine.
Order pronounced in the open court on 21st November,2025.